Economists need to revisit the rational and efficient market assumption

Comments on Alan Kohler “The Lehman lesson is ongoing”, 14/09/2009, http://www.businessspectator.com.au/bs.nsf/Article/The-Lehman-lesson-is-ongoing-pd20090914-VUSXM?OpenDocument&src=sph

I totally agree with you on that "it’s imperative that economists do the same and come up with a new theory that accepts that economies are run by flawed humans and that they are buffeted by a financial system that is subject to the madness of crowds."

I also agree with you on that "Macroeconomists have suffered a terrible blow to their confidence", except some small handful exceptionally strong Keynesians.

The rational and efficient market assumption just blinded too many economists and diverted too much resource of economic research and policy research away from studying the real market and policies that could have avoided the financial and economic crises.

Economists need to correct that.